titalili0204
29.01.2021 •
Business
Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income.
Assets = Liabilities + Owner's Equity - Kristoff Walker,
Cash + Supplies + Land = Accounts + Kristoff Walker, Drawing
Payable Capital
Bal. 27,600 3,600 69,000 7,500 92,700
1. +32,300 +32,300
2. -13,800 +13,800
3. -24,000 -24,000
4. +1,400 +1,400
5. -1,800 -1,800
6. -6,600 -6,600
7. -2,800 -2,800
Bal. 13,700 2,200 82,800 2,300 92,700 -1,800
Fill in the blank options for questions of a:
-Recognition of cost of supplies used
-Withdrawal of cash by owner
-Purchase of supplies on account
-Purchase of land for cash
-Payment of cash to creditors
-Payment of cash for expenses
-Provided catering service for cash
A. Select the description for transaction 1
Select the description for transaction 2
Select the description for transaction 3
Select the description for transaction 4
Select the description for transaction 5
Select the description for transaction 6
Select the description for transaction 7
B. What is the amount of the net decrease in cash during the month?
C. What is the amount of the net increase in owner's equity during the month?
D. What is the amount of the net income for the month?
E. How much of the net income for the month was retained in the business?
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Ответ:
A. Description for :
Transaction 1 - Provided catering service for cash
Transaction 2 - Purchase of land for cash
Transaction 3 - Payment of cash for expenses
Transaction 4 - Purchase of supplies on account
Transaction 5 - Withdrawal of cash by owner
Transaction 6 - Payment of cash to creditors
Transaction 7 - Recognition of cost of supplies used
B. The amount of the net decrease in cash during the month = 13,900
C. The amount of the net increase in owner's equity during the month = 3700
D. The amount of the net income for the month = 5500
E. The net income for the month was retained in the business = 3700
Explanation:
a)
Description for :
Transaction 1 - Provided catering service for cash
Transaction 2 - Purchase of land for cash
Transaction 3 - Payment of cash for expenses
Transaction 4 - Purchase of supplies on account
Transaction 5 - Withdrawal of cash by owner
Transaction 6 - Payment of cash to creditors
Transaction 7 - Recognition of cost of supplies used
b.)
Net decrease = Closing Balance - opening Balance
= 27,600 - 13,700
= 13,900
⇒The amount of the net decrease in cash during the month = 13,900
c.)
Net increase in owner's equity = ( Opening capital balance - Drawing + Income earned during the year - Expenses incurred during the year ) - Opening capital
⇒Net increase = ( 92,700 - 1800 + 32,300 - 26,800 ) - 92,700
= 96,400 - 92,700 = 3700
⇒The amount of the net increase in owner's equity during the month = 3700
d.)
Amount of the net income for the month = Total Income - Expenses
= 32,300 - 26,800
= 5500
⇒Amount of the net income for the month = 5500
e.)
Net income for the month was retained in the business = Net Income - Drawings
⇒Net income was retained in the business = 5500 - 1800
= 3700
⇒Net income for the month was retained in the business = 3700
Ответ:
A. According to the company's accounting system, what is the net operating income earned by product V86O?
net loss ($5,000)B. What would be the effect on the company's overall net operating income if product V86O were dropped?
the company's net operating income would decrease by $40,000Explanation:
net operating income from product V860:
total sales $150,000
- variable expenses $72,000
- fixed manufacturing expenses $50,000
- fixed selling and administrative expenses $33,000
net loss ($5,000)
if product is dropped:
unavoidable fixed costs = ($50,000 + $33,000) - ($30,000 + $13,000) = $40,000